Rothschild & Co Bank, the wealth management subsidiary of Rothschild & Co, has agreed to purchase Geneva-based private bank Banque Pâris Bertrand.
Financial terms of the deal were not disclosed.
With offices in Geneva and Luxembourg, Banque Pâris Bertrand caters to wealthy families, family offices and institutional investors, majorly from Switzerland, and other European markets.
The firm is active in the wealth management business and also runs three asset management businesses namely, LongRun Global Equity Fund, Pâris Bertrand Systematic Asset Management and Hermance Capital Partners Private Equity investment solutions.
At the end of November this year, the firm had around CHF6.5bn ($7.4bn) in client assets. Over 90% of its wealth management assets are from clients with over CHF5m.
The deal is pending regulatory approvals and expected to close in the first half of the next year.
Upon the completion of the transaction, Banque Pâris Bertrand founding managing partners Pierre Pâris and Olivier Bertrand will assume the roles of executive vice-chairman of Rothschild & Co Bank.
‘Excellent strategic fit’
The addition of Banque Pâris Bertrand is deemed an ‘excellent strategic fit’ for Rothschild & Co’s wealth management business, with a similar strategy as well as a comparable client profile.
The deal has been called a major milestone in the expansion of the business and is said to fortify Rothschild & Co’s position in the Swiss wealth management space.
Moreover, Banque Pâris Bertrand will provide the company with complementary investment capabilities and a presence in Luxembourg.
Client assets for the Rothschild & Co Wealth Management business in Switzerland will total over CHF20bn upon deal completion, up from around CHF14bn as of 30 September 2020.
Additionally, the deal will take the AuM at Rothschild & Co’s overall wealth and asset management arm to over €75bn.
Rothschild & Co noted that the takeover will help it become ‘well-capitalised, comfortably in excess of regulatory requirements, and with a robust balance sheet’.
Rothschild & Co executive chairman Alexandre de Rothschild said: “Our Wealth Management business has strong footholds across Europe and this acquisition is another step in developing our unique offering.
“We are delighted that the Banque Pâris Bertrand, an extremely reputable private bank in the important Swiss market, has agreed to join our group. This is a highly complementary acquisition for Rothschild & Co, with shared values and a like-minded approach to business.”
Rothschild & Co Bank Switzerland CEO Laurent Gagnebin said: “The acquisition of such a well-respected private bank will support the growth of our successful Swiss bank.
“We believe that the combined knowledge and extensive network of Banque Pâris Bertrand and Rothschild & Co will benefit the clients of both firms, enabling us to offer them the best possible advice and service.”
Pierre Pâris of Banque Pâris Bertrand said: “Olivier Bertrand and I are delighted to build a new partnership with Rothschild & Co. After 11 years of exceptional track record and uninterrupted growth, the timing was right to join forces with Rothschild & Co to be better positioned for capturing growth opportunities and for addressing the foreseen increasingly complex regulatory environment in the interest of our clients and our teams.”